- AUD/USD breaks above 20-DMA, to hit fresh weekly highs at 0.7897 last week, bias higher.
- The pair is currently trading in a narrow range, finds next major resistance at 0.7911 (50-DMA).
- Aussie has remained muted despite upbeat China PPI data released earlier today.
- China's producer price index jumped 6.9% year-on-year in September, beating the estimates at 6.6%.
- Technical studies also support upside in the pair. RSI and Stochs are sharply higher and MACD shows bullish crossover.
- Break above 50-DMA could see test of weekly 200-SMA at 0.7925. On the flipside, we see weakness on break below daily cloud at 0.7848.
Support levels - 0.7863 (20-DMA), 0.7848 (cloud base), 0.7826 (5-DMA)
Resistance levels - 0.79, 0.7911 (50-DMA), 0.7925 (Weekly 200-SMA)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-USD-holds-5-DMA-support-Bullish-Cypher-pattern-adds-scope-for-upside-947231) has hit TP1/2.
Recommendation: Book partial profits at highs, raise trailing stop to 0.7845, hold for further upside.
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